The full Tenth Circuit Court of Appeals has agreed to examine a three-judge panel ruling leaving in place a Colorado law that caps interest rates and fees on loans to state residents.
In 2024, three financial technology sector associations sued Colorado after the state legislature passed a law opting out of the federal Depository Institutions Deregulation and Monetary Control Act, allowing the state to establish restrictions on loans made by state-chartered banks. A federal district court issued a preliminary injunction against enforcement of the law. However, the Tenth Circuit Court of Appeals reversed the lower court ruling in a 2-1 decision, with the majority arguing the plaintiffs were unlikely to succeed on the merits.
The American Bankers Association was among the many outside groups that called on the full Tenth Circuit to reconsider the decision. In a filing last week, the majority of justices agreed to rehear the case and vacated the 2-1 ruling. All parties in the lawsuit were given time to answer six questions posed by judges about the case.
